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Paying off student loan is one of the many exit strategies that are helping the graduates in the UK, who are graduating with approximate £44,000 debts running on their heads. This figure is indeed a record high, and it becomes essential to think of the strategies for minimising the repayments by adjusting within the structure of short term loan for the students.

The Higher Education Policy Institute (HEPI) has working out action plan to place tougher sanctions on graduates who have refused paying back their student loan; larger chunk in this category includes those who have moved to another country. HEPI is serious enough to treat such loan offenders as tax evaders, benefits fraudsters, and call for their arrest.

From a distance, this seems to appear sensible and righteous. The moment any student enrols himself or herself into the university, an agreement is signed with authorities. The fund is offered to complete desired course within the timeframe and the graduating student have to repay back after the earning begins.

Amidst the critical issues associated with repayment modalities, what really matters is the way you strategise on your loan repayments. Here is the credible advice of strategising your loan repayments:

First Option – The Loan Upfront should be Paid Off

When the student is seriously considering of the option to repay the loan, he or she is going to remain debt free. But the problem here is that graduates may very likely have several thousand pounds to pay. It is a completely confusing state of affairs for the graduate students who are planning to take next step in building the career.

It is worth noticing that short term loan for the students will not affect the credit file, and therefore, could not affect the ability of graduates for borrowing in the future. Lenders on the other hand, would definitely ask for the accountability of debts during the mortgage application procedures.

Second Option – Minimum Needed Repayments should be made by the Graduates

In a scenario where the graduates have begun earning £21,000 or above, annually, they are going to repay 9pc of their income above this earning, with repayments spread out depending on earnings. The principal benefit of this option is for the low wage earners, who either have to repay a little amount (equivalent to RPI) or nothing at all. The category of earning graduates has to pay rates of interest on the sum owned.

The key problem associated with this type of option is that student loans in the UK are currently attracting 5.5pc, which may be the reason that slows repayments leads to higher costs.

Third Option – Use Extra Cash and “Overpay” the Loan

Good and more practical options to work in favour of graduate students who are running in huge debts is to make voluntary payments to lender and make a good reduction of the debts. The graduates with high wage earning will be better off, as they will repay the loan quickly and interest rates would be reduced considerably.

In the end, strategies and options should be worked out keeping in view the element of logic. The more efficiency you show, better are your prospects to lead a financially balanced life as well as reap the benefits from her.

Unemployment is a common problem and it can affect anybody. Everything runs smooth till you have a good job and so constant income. But once the job has gone, you find it difficult to manage your daily expenses, credit card bills, kids’ fees, and more. In such circumstances, you feel helpless and can’t find any financial help to overcome this situation.

Well, loans for unemployed are one of the best solutions to overcome your financial woes in the jobless situation. You get the required funds despite your unemployment status. It boosts your available money plus mental status. Let us discuss A2Z of jobless loans:

What is an Unemployed Loan?

A loan for the unemployed is basically a short-term loan which you can repay in a year or according to your convenience. Most of the traditional banks and lenders don’t entertain loan applications from the jobless people, but there are some reliable and dedicated vendors in the UK who offer jobless loans without any guarantor. Stop worrying for the funds and apply for the loan now!

Who Can Apply for the Loans for Unemployed?

Any person can apply for a jobless loan provided he or she has lost his/her job and 18 years plus in age. Such loans are also open to single mothers or housewives who don’t have any job. Various traditional lenders ask for collateral as there is a risk involved. They may ask you if you have any alternate source of income or if you are surviving on some government benefit scheme. Actually, they want to ensure if you can repay the loan. However, there are some top lenders in the UK who don’t need anything except your loan application.

Can Bad Credit People avail the Loan for Unemployed?

Your credit score really matters when you apply for a traditional loan, but there are online lenders who don’t need to check your credit history. They strive for helping you in the unemployment status when you need funds the most. They understand your financial problems well and offer you the best deal on loans for the unemployed. So, whether you have a bad credit history or a good history, you can always avail a no job loan. Moreover, they don’t ask for any guarantor. So, the whole loan process is surprisingly hassle-free and quick.

From Where to get a Loan for the Unemployed

The traditional banks and offline lenders in the UK usually ask you to come to their offices and submit various documents and take too much time to process your application for loans for unemployed. Just dump them! On the other hand, the online vendors in the UK don’t ask you to come to their offices and go through a tiresome loan approval process. Everything is online. Once the loan is approved, they quickly transfer funds to your bank account.
How to apply for a Loan for the Unemployed?

Applying for no job loans online is so fast and the approval process is instant. You don’t have to wait for days or weeks. No documents are required. Just fill a small form online and rest the team of the chosen reliable lender will take care of. Actually, the whole loan process depends upon the lender. If the lender is good and credible, then you don’t have to worry at all. If unluckily you have chosen a fake lender then it will add more problems to your financial life.

Tips to Get the Best Deal on Loans for Unemployed

Availing the best deal on the jobless loans is tricky as they are quite costly due to the involved risk. You have to follow some tips to get the best offer:

1. Visit websites of only reliable lenders in the UK

2. Compare the interest rates and select the one with the lowest interest rate

3. Many lenders charge low interest rate, but keep various charges hidden under the sheet. Beware of such lenders and make sure there are no hidden charges, any upfront fee, pre-payment charges, file processing charges, loan disbursal charges etc.

4. Check how other customers have talked about the lender. If there is any negative feedback given by an old customer. Be careful while checking reviews and ratings. Many lenders put top ratings and write reviews themselves to attract the prospective customers.

5. Check if the chosen lender’s services are legal in the UK

6. Go for a flexible repayment mode. Obviously, you will take time to search for a new job and settle down. Select a monthly EMI that you can actually repay. Don’t overburden yourself.

7. Declare your credit rating if you think it is good enough to get a cheaper loan for the unemployed

8. Always read T & C of the chosen lender thoroughly. There might be a surprise hidden from you. Explore it before you apply for the loan!

It is always advisable not to avail a loan when you are jobless. There is always a risk of missing EMIs and hence a low credit score. Always look for the funds from your friends or family members. If you think you can repay EMIs then go for the jobless loans. The choice is yours!